US’ April Group III base oil imports rise

US Group III base oil imports recovered in April from a slump in shipments the previous month, leaving the domestic market well supplied.

Base oil imports of 1.06mn bl (149,860t) in April rebounded from a 12-month low of 827,710bl the previous month, government data showed.

The volume was similar to typical levels of around 1.07mn bl/month over the past year.

Imports of 4.17mn bl in the first four months of the year were up 10pc from 3.78mn bl during the same period last year.

The higher import volumes have eased upward pressure on US Group III base oil prices this year.

Prices have still risen sharply. The increase reflected more the pressure of rising feedstock costs.

Prices also rose sharply last year. The increase that time reflected more the pressure of strong demand and insufficient supply.

The rise in prices this year has lagged the rise in US Group I and Group II prices. The narrower premium of Group III prices to Group II boosts the attraction of consuming more Group III base oils instead.

The April imports got a boost from a recovery in shipments from Qatar. There had been no imports from that market in March.

Supplies from South Korea have also held steady at higher levels so far this year.

Imports of more than 10,000bl from Malaysia in April were also the highest since 2017.